Improve attractiveness of ShapeShift-like services

Can we work with ShapeShift? It’s a very neat service, but I perceive it to be lacking in aspects as conversion rate and liquidity. If we help provide liquidity and they have an appropriate rate for customers I could see it being used more to the benefit of both.

Update: Apparently, ShapeShift works with bots on Poloniex, so in effect we are already providing liquidity.

Potential improvements of service

  • Consistent conversion rate within the confines of our peg.
  • More and reliable amount of liquidity, potentially leading to more trading and profit for the service and Nu.


Sidenote: We should tell ShapeShift to capitalise NuBits correctly. Currently “Nubits”. Same with “Maidsafe”, whereas “BitCrystals” is according to that community, so they’re not just being internally consistent.

ShapeShift had some pretty bad prices in the past… But I didn’t check that regularly for some time. could be an alternative… maybe.

I’m thinking they may agree to better prices if they gain a steady stream of liquidity.

That looks pretty nice too!

We are already providing liquidity indirectly . I guess

How do you mean?

If shapeshift wants to buy some NBT for BTC, I’d be happy to do it at $1.002/NBT using bitfinex prices.

I’m confused how you know that shapeshift is lacking in US Nubits liquidity. It tells me I can buy up to 2.6 BTC of NBT, the same as for BTC/LTC.

I don’t know it, it’s my perception from having wanted to use it in the past. But I don’t remember exactly what the problem was. Oh, it was just broken when I posted apparently.

Anyhow, the point is to make ShapeShift (or alternatives) a place I can conveniently convert to and from NuBits at a reasonable rate, and rely on it having liquidity available at all or at least most times, or else people will not keep going there and use exchanges instead. I imagine some kind of deal would make that more likely.

You may well not believe that is a good idea, but I’d like to know why.

shapeshift behind the curtains is a bot on exchanges + some shining stars. And poloniex is used

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Aha! I updated my proposal to reflect this and better convey what I want.

An argument against this is that with B&C Exchange coming up it may be the wrong direction to spend effort.

NuLagoonTube does it better.

NuLagoon Tube doesn’t convert between all the coins that ShapeShift does, only Bitcoin. If NuLagoon adds support for more coins, that might be the better alternative, but that seems far away if not already superseded by BCE by then.

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In order to convert any coin to NBT and NBT to any coin you need to use BTC as the middle coin.
Thus the tube could be very useful for that. I guess shapeshift and changelly don’t know about it yet!

You need to add something on top of NuLagoon Tube to reproduce a ShapeShift-like service. If a merchant asks for an amount of BTC, there must a guarantee that the NBT you send in will give you exactly that much BTC, and that amount must be decided upon a negotiation with NuLagoon Tube. Currently such guarantee is not provided.

Making this work would actually introduces arbitrage risk for the service, particularly because the user has a choice to not send in the funds. So some risk control is needed. The infrastructure will end up pretty complex, but it should be worthwhile for Nu to build it with BCE in mind.

My T3 service works this way. I deal with the arbitrage by manually agreeing to trades and keeping track of those that miss their tickets. If you miss your ticket I’ll trust you less, meaning i might charge a higher spread.

What do you mean by “some shining stars”? Some huge players (whales) like those guys that invested there?

BTW I found another one:

Disclaimer: I’m in no way affiliated to that project. :slightly_smiling:

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This site provides NBT/NSR trade, interesting. But what if B&C exchange launch in future? The competitor of shapeshift?

My bet is the following:

ShapeShift and similars will route their orders in order to use B&CEx as well.

So they’re gonna increase their own liquidity and volume and decrease their third party risk by trusting and depending less on centralized exchanges.

B&CEx is gonna bring healthy liquidity and volume for everybody (maybe even for centralized exchanges).

I see all of them more as a complement than competitors.

I guess we got market for everyone!